Reebonz operates a differentiated platform for new and pre-owned luxury goods within the Asia-Pacific market, Aftahi said in the initiation note. The company's .8 million capital raise in April puts it in a better position to aggressively spend on marketing and show topline growth in the back half of 2019. (See the analyst's track record here.)

Here are three reasons Aftahi likes the stock moving forward:

Reebonz's total addressable market consists of the new and pre-owned luxury goods in APAC and estimated at $44 billion. The company's penetration rate stands at just 5 percent, which Aftahi said implies room for growth as the upper and middle-class gravitates more towards online channels.

Compared to its peers, the analyst said Reebonz stands out by offering buyers a sell back guarantee and user credits. This gives repeat buyers an incentive to use its platform and the use of credits encourages buyers to become sellers. This creates a network effect and drives higher inventory as well as demand for products.

The key to Reebonz's success, according to Aftahi, is its ability to boost variable marketing spend like customer acquisitions. Now that the "once capital constrained" company is flush with new capital, it can focus on generating member growth, buyer and order growth to generate a steady return on investments.

Price Action

Shares of Reebonz were trading higher by more than 6 percent at $5.70 Wednesday afternoon.